Jimeet Modi of SAMCO Securities said volatility has increased giving intraday traders good opportunities provided they are on the right side of the market
The benchmark indices closed moderately in green on August 2, but weakness continued for the fourth straight week in a row, keeping the Nifty below psychological 11,000 level.
The BSE Sensex after witnessing a swing of 768 points closed 99.90 points higher at 37,118.22 on August 2 but lost 2 percent for the week.
Nifty gained 17.40 points to close at 10,997.40 but saw 2.5 percent weekly loss. The index formed a bullish candle that resembles a High Wave kind of pattern on daily charts but saw bearish candle formation on the weekly scale.
"The formation of High Wave type candle pattern signals a confused state of mind among market participants at the lows. Though Nifty is showing a sharp weakness recently, we observe the emergence of buying frequently from the lows in the last couple of occasions. But, the sustainability of gains had been a major concern as of now," Nagaraj Shetti, Technical Research Analyst, HDFC Securities told Moneycontrol.
He said the overall chart pattern indicates a possibility of upside bounce in the market, but a reversal with a confirmation of up move in the subsequent sessions could only open a possibility of more upside in the market. Immediate supports to be watched at 10,850 levels, he added.
Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote said volatility has increased giving intraday traders good opportunities provided they are on the right side of the market.
"Traders may cover their short positions and wait for rallies to create further short positions. Long trading positions should be avoided from trading perspectives," he advised.
The broader markets also saw some recovery from day's low and cut down losses to end 0.3 percent lower on Friday. For the week, the Nifty Midcap index lost 2.82 percent and Smallcap index shed 4.74 percent.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 10,997.35 on August 2. According to the pivot charts, the key support level is placed at 10,870.8, followed by 10,744.3. If the index starts moving upward, the key resistance levels to watch for out are 11,102 and 11,206.7.
The Nifty Bank closed at 28,204.95, down by 162.30 points on August 2. The important pivot level, which will act as crucial support for the index, is placed at 27,912.6, followed by 27,620.3. On the upside, key resistance levels are placed at 28,520.9 and 28,836.9.
Call options data
Maximum Call open interest (OI) of 22.21 lakh contracts was seen at the 11,500 strike price. It will act as a crucial resistance level in August series.
This is followed by 11,000 strike price, which now holds 16.38 lakh contracts in open interest, and 11,700, which has accumulated 16 lakh contracts in open interest.
Significant Call writing was seen at the 11,000 strike price, which added 4.10 lakh contracts, followed by 10,900 strike price, which added 2.09 lakh contracts. This was followed by 11,500 strike, which added 1.48 lakh contracts.
Call unwinding was seen at 11,300 strike, which shed 2.03 lakh contracts, followed by 11,200 strike, which shed 1.81 lakh contracts and 11,700 strike, which shed 0.6 lakh contracts.
Put options data
Maximum Put open interest of 34.78 lakh contracts was seen at 11,000 strike price. It will act as a crucial support level in August series.
This is followed by 10,800 strike price, which now holds 16.41 lakh contracts in open interest and 11,200 strike price, which has now accumulated 16.03 lakh contracts in open interest.
Put writing was seen at the 10,900 strike price, which added 4.17 lakh contracts, followed by 10,400 strike, which added 1.96 lakh contracts and 10,500 strike, which added 1.5 lakh contracts.
Put unwinding was seen at the 11,100 strike price, which shed 0.91 lakh contracts, followed by 11,200 strike that shed 0.83 lakh contracts and 11,300 strike price which shed 0.34 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are accepting delivery of the stock, which means investors are bullish on it.
34 stocks saw a long buildup
47 stocks that saw short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering.
50 stocks saw a short build-up
An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions.
31 stocks saw long unwinding
Analyst or Board Meetings/Briefings
NIIT: Board will consider June quarter earnings and proposal for buyback of equity shares of the company on August 10.
R Systems International: Investors/ Analysts call of the company will be held on August 6 to discuss the financial results for quarter and six months ended on June 2019.
Siyaram Silk Mills: Company will announce its June quarter earnings on August 13.
Reliance Infrastructure: Company will announce its June quarter earnings on August 13.
National Aluminium Company: Company will announce its June quarter earnings on August 13.
Future Consumer: Company will announce its June quarter earnings on August 9.
Reliance Communications: Company will announce its June quarter earnings on August 9.
Reliance Naval and Engineering: Company will announce its June quarter earnings on August 10.
CL Educate: Company has scheduled an analysts and investors Quarter-1 Financial Year 2019-20 Earnings Call on August 6.
Infibeam Avenues: Company will announce its June quarter earnings on August 8.
Adani Green Energy: Result conference call with investors to be held on August 8.
Stocks in news
Results on August 5: Vishnu Chemicals, Entertainment Network (India), Butterfly Gandhimathi Appliances, Dwarikesh Sugar Industries, Action Construction Equipment, Usha Martin Education, Kamat Hotels (I), KEI Industries, Mangalam Cement, Orient Green Power Company, Venky's (India), Nath Bio-Genes (India), Bombay Dyeing, SRF, Jindal Stainless, Agri-Tech (India), Vesuvius India, Berger Paints (I), Indian Hotels Company, Arvind SmartSpaces, Hindustan Oil Exploration Company, Hexa Tradex, Nesco, Simplex Projects, Asian Hotels (East), Majesco, GP Petroleums, Standard Industries, Sundaram Finance Holdings, CL Educate, Dilip Buildcon, PNB Gilts, Cosmo Films, Indian Bank, Monte Carlo Fashions, Techindia Nirman, Torrent Power, Parenteral Drugs, Piramal Phytocare, Hinduja Global Solutions, Khandwala Securities, Seya Industries.
ITC Q1: Profit rises 12.6 percent to Rs 3,173.9 crore versus Rs 2,828.7 crore, revenue increases 5.8 percent to Rs 11,502.8 crore versus Rs 10,874.6 crore YoY. Cigarettes revenue rises 6 percent to Rs 5,433.4 crore versus Rs 5,127.6 crore YoY.
Nestle India Q2: Profit jumps 10.8 percent to Rs 437.8 crore versus Rs 395 crore, revenue increases 11.2 percent to Rs 3,000 crore versus Rs 2,698.4 crore YoY.
Deepak Nitrite Q1: Consolidated profit jumps to Rs 132 crore versus Rs 18.7 crore, revenue surges to Rs 1,051 crore versus Rs 463.9 crore YoY.
GSPL Q1: Profit spikes 34.4 percent to Rs 206 crore versus Rs 153,3 crore, revenue rises 16 percent to Rs 512.6 crore versus Rs 441.8 crore QoQ.
Aditya Birla Capital Q1: Consolidated profit grows 27 percent to Rs 270 crore versus Rs 213 crore, revenue rises 16 percent to Rs 3,962 crore versus Rs 3,424 crore YoY.
Laurus Labs Q1: Consolidated profit dips 9.1 percent to Rs 15 crore versus Rs 16.5 crore, revenue rises 2.1 percent to Rs 550.5 crore versus Rs 539 crore YoY.
eClerx Service Q1: Consolidated profit slips 32.8 percent to Rs 39.8 crore versus Rs 59.2 crore, revenue dips 2.8 percent to Rs 354.7 crore versus Rs 365 crore QoQ.
Union Bank of India Q1: Profit surges 73.3 percent to Rs 224 crore versus Rs 129.5 crore, NII falls 4.1 percent to Rs 2,518.2 crore versus Rs 2,626.1 crore YoY. Gross NPA rises to 15.18 percent versus 14.98 percent and net NPA increases to 7.23 percent versus 6.85 percent QoQ.
The lender is not looking to exit Star Union Dai-ichi Life Insurance.
Parag Milk Q1: Consolidated profit dips 2.5 percent to Rs 28 crore versus Rs 28.2 crore, revenue rises 14.6 percent to Rs 629.7 crore versus Rs 549.4 crore YoY.
Coffee Day Enterprises: Board postponed company's April-June quarter earnings. It was scheduled to report earnings on August 8. In addition, Sulakshana Raghavan resigned as independent director for personal reasons.
Bata India Q1: Profit rises 22.1 percent to Rs 101 crore versus Rs 82.5 crore, revenue increases 10.6 percent to Rs 882.1 crore versus Rs 797.2 crore YoY.
Zen Technologies Q1: Profit at Rs 16.8 crore versus loss of Rs 3.3 crore, revenue rises to Rs 48.8 crore versus Rs 6.1 crore YoY.
JK Cement Q1: Profit jumps to Rs 153.8 crore versus Rs 49.3 crore, revenue rises 19 percent to Rs 1,328 crore versus Rs 1,115.6 crore YoY.
MRPL Q1: Loss at Rs 450.5 crore versus profit of Rs 354.7 crore, revenue falls 38.8 percent to Rs 11,175.6 crore versus Rs 18,265.6 crore YoY.
Triveni Turbine Q1: Profit jumps 61.6 percent to Rs 30.7 crore versus Rs 19 crore, revenue increases 24.3 percent to Rs 213.6 crore versus Rs 171.8 crore YoY.
Jammu & Kashmir Bank Q1: Profit falls 58.4 percent to Rs 21.9 crore versus Rs 52.6 crore, NII rises 15.8 percent to Rs 902.2 crore versus Rs 779.2 crore YoY. Gross NPA dips to 8.48 percent versus 8.97 percent, net NPA slips to 4.36 percent versus 4.89 percent QoQ.
Trident Q1: Profit jumps to Rs 122.4 crore versus Rs 58.9 crore, revenue rises 15.5 percent to Rs 1,312.1 crore versus Rs 1,136.4 crore YoY.
GMDC Q1: Profit falls 48.7 percent to Rs 95.8 crore versus Rs 186.7 crore, revenue dips 21.7 percent to Rs 504.8 crore versus Rs 644.8 crore YoY.
Corporation Bank Q1: Profit jumps 21.5 percent to Rs 103.3 crore versus Rs 85 crore, NII dips 17 percent to Rs 1,298.6 crore versus Rs 1,564.2 crore YoY. Gross NPA rises to 15.44 percent versus 15.35 percent and net NPA dips to 5.69 percent versus 5.71 percent QoQ.
Tata Communications Q1: Consolidated profit at Rs 76.61 crore versus loss at Rs 58.49 crore, revenue rises to Rs 4,168.62 crore versus Rs 3,943.75 crore YoY.
CARE Ratings Q1: Profit dips to Rs 13.17 crore versus Rs 25.02 crore, revenue falls to Rs 49.92 crore versus Rs 59.99 crore YoY.
Adani Power: Company completed the acquisition of GMR Chhattisgarh Energy Ltd.
Reliance Industries: Subsidiary Reliance Industrial Investments and Holdings entered into an agreement for the acquisition of equity shares of Shopsense Retail Technologies Pvt. Ltd. (Shopsense or Fynd), the software technology company, for a cash consideration not exceeding Rs 295.25 crore.
Dewan Housing: Company defaulted NCD interest payment of Rs 49.3 crore on August 3 and Rs 42.8 crore on August 2.
Jet Airways: Expression of Interest (EoI) submission deadline extended to August 10.
SBI, UCO Bank, United Bank of India, Bank of Baroda, Oriental Bank of Commerce, PNB, Corporation Bank: RBI slaps a fine of Rs 50 lakh, Rs 1 crore, Rs 1 crore, 50 lakh, Rs 1.5 crore, Rs 50 lakh and 1 crore, respectively, for delay in reporting fraud.
Reserve Bank of India also imposed monetary penalty on seven banks: Allahabad Bank (Rs 2 crore), Bank of Baroda (Rs 1.5 crore) Bank of India (Rs 1.5 crore), Bank of Maharashtra (Rs 2 crore), Indian Overseas Bank (Rs 1.5 crore), Oriental Bank of Commerce (Rs 1 crore), Union Bank of India (Rs 1.5 crore).
Jubilant Life: Company raised Rs 40 crore via commercial paper.
Cox & Kings: Company defaulted on Rs 100 crore worth commercial papers.
Manpasand Beverages: Company appointed Batliboi & Purohit as statutory auditors.
Punjab & Sind Bank: Lender reported a Rs 40.49 crore fraud to RBI.
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FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 2,888.06 crore, but Domestic Institutional Investors (DIIs) bought Rs 2,812.66 crore worth of shares in the Indian equity market on August 2, as per provisional data available on the NSE.
Fund Flow Picture
No stock under F&O ban period on NSE
For August 5, not a single stock is under the F&O ban period.
Securities under the ban period under the F&O segment include companies in whose security has crossed 95 percent of the market-wide position limit.Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust that controls Network18 Media & Investments Ltd.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.